HVDC Transmission Market Size, Share, 2032
HVDC Transmission Market Size and Forecast (2025 - 2032), By Technology (Line Commutated Converter (LCC), Voltage Source Converter (VSC), Others), By Component (Converter Stations, Transmission Cables, Others), By Project Type (Point-to-Point Transmission, Back-to-Back Stations, Multi-Terminal Systems), By Application (Overhead, Underground, Subsea), By Voltage Rating (<350 kV, 350-640 kV, 640-800 kV, >800 kV), and Geography.
Market Overview:
The global High-Voltage Direct Current (HVDC) Transmission market is expected to reach a high CAGR of 8.5% over the Forecast Period 2025-2032, reaching a market value of $17.2 billion by then.
The Asia-Pacific region currently dominates the market, accounting for 45% of total sales, owing to fast infrastructure development and rising demand for dependable, long-distance power transmission. Key drivers of this increase include the increasing integration of renewable energy sources into power grids, the growing demand for efficient electricity transmission over long distances, and continued technological breakthroughs in HVDC systems.
HVDC's value is heightened by its capacity to facilitate grid interconnections, hence promoting regional and international energy exchanges. Notably, in India, demand for power is estimated to reach 277 gigawatts by 2027, necessitating an expenditure of Rs 4.25 trillion in power transmission infrastructure. In keeping with this, organizations such as Hitachi Energy are playing critical roles in supporting the HVDC market. Hitachi Energy opened a new HVDC and power quality factory in Chennai in October 2023, demonstrating its commitment to advancing sustainable energy solutions. These developments are critical for ensuring the stability of electrical grids and integrating renewable energy sources, propelling the worldwide HVDC market forward.
HVDC Transmission Market Dynamics:
Market Trend: Rising adoption of voltage source converter (VSC) technology
The increasing use of Voltage Source Converter (VSC) High-Voltage Direct Current (HVDC) technology is reshaping the worldwide power transmission landscape, owing to its various advantages over older Line-Commutated Converter (LCC) systems. VSC-HVDC technology is becoming more popular due to its improved controllability, compactness, and ability to support weak grids, making it a top choice for modern electrical infrastructure. VSC systems enable independent control of active and reactive power, resulting in increased flexibility and stability in power distribution. Furthermore, VSC-HVDC has black-start capabilities, making it an important asset in system restoration following power failures. Its ability to connect to weak AC grids or passive networks adds to its appeal, particularly in applications such as connecting offshore wind farms and distributing electricity in metropolitan areas.
Due to their compact size, VSC stations are appropriate for crowded urban situations where space is limited. Adani Energy Solutions Limited's (AESL) $1 billion green HVDC link project, which will increase Mumbai's renewable energy supply, is an excellent example of this technology in operation. This 80-kilometer project is expected to enhance the city's infrastructure and will begin construction in October 2023. Furthermore, advances in VSC technology, particularly the invention of Modular Multilevel Converters (MMC), have greatly increased efficiency while minimizing harmonic distortion, making the systems even more dependable. As grid operators prioritize flexible and resilient transmission networks, demand for VSC-HVDC systems is likely to increase. This transition is anticipated to encourage more innovation in converter designs and control tactics, ensuring that VSC technology plays an important role in the future of global power transmission.
Market Driver: Increasing integration of renewable energy sources
The growing use of renewable energy sources in the worldwide power mix is pushing up demand for High-Voltage Direct Current (HVDC) transmission systems. As renewable energy capacity grows rapidly worldwide, HVDC technology becomes increasingly important for efficiently linking remote renewable energy producing sites—such as offshore wind farms and solar plants—to urban consumption areas. This is especially essential because many large-scale renewable projects are situated far from major population centers. HVDC systems are highly efficient in transmitting huge amounts of electricity over long distances with minimal loss, making them perfect for delivering renewable energy from remote sources to where it is required.
One important illustration of this trend is the increasing reliance on HVDC to connect offshore wind farms to onshore networks. Offshore wind farms, which are placed far at sea, require HVDC technology to carry electricity underwater over long distances, where regular Alternating Current (AC) systems would incur larger losses and have technical restrictions. The successful development of such HVDC projects is critical for reaching ambitious climate targets. Several important developments emphasize this market driver. In February 2021, Avangrid Inc. issued a transmission services RFP for its proposed Excelsior Connect transmission line in New York, which will bring renewable energy to New York City's Zone J. This 1,310-MW bidirectional HVDC transmission line will help integrate renewable energy into the city's grid. Furthermore, in January 2024, DNV launched a joint industry project (JIP) with ten offshore wind and transmission system providers to address the obstacles of deploying HVDC technology in the US grid. In November 2024, GE Vernova expanded its electrification facility in Berlin, Germany, by establishing an HVDC competence center to increase grid stability and promote renewable energy integration throughout Germany and Europe.
Furthermore, HVDC's capacity to stabilize grids and permit power transfer across regions with differing frequencies makes it critical for controlling the intermittent nature of renewable energy sources. As countries continue to invest in renewable energy infrastructure and modernize their electrical grids for a low-carbon future, demand for HVDC systems is likely to rise, propelling the growth of global power transmission networks.
Market Restraint: High initial investment costs
The high initial investment costs of High-Voltage Direct Current (HVDC) transmission systems, particularly converter stations, are a significant obstacle to wider adoption, particularly in developing nations. While HVDC technology has significant long-term benefits, including as efficient long-distance power transmission and grid stability, the high initial costs remain a major barrier. HVDC projects, particularly those requiring long-distance or submerged cables, necessitate significant capital investments in infrastructure, such as converter stations, specialized cables, and advanced equipment. These converter stations can be excessively expensive, accounting for a large amount of the overall project cost.
For smaller utilities or poor countries, the financial burden of deploying HVDC technology may be too expensive, restricting their ability to reap its benefits. Furthermore, the complexity of HVDC systems necessitates specialist expertise in design, installation, and maintenance, which drives up project costs. This makes it difficult for countries or regions with limited budgets to justify the use of HVDC, despite the long-term promise for increased efficiency and stability. To overcome these problems, industry players are focused on technology developments that aim to lower component costs and increase the overall cost-effectiveness of HVDC systems over their entire lifespan. Despite these efforts, the sector continues to face substantial challenges in balancing high initial investment costs with long-term benefits of HVDC transmission.
A significant example of a large-scale HVDC project is in India, where the HVDC-based network measured 19,375 circuit kilometers (ckm) as of March 31, 2022, with a transfer capacity of 33,500 MW. The largest HVDC project in the country, expected to cost up to Rs. 20,000 crore, will involve 480 km of ±350kV lines and two HVDC terminals at Pang (Ladakh) and Kaithal (Haryana). This project, which is anticipated to start with equipment orders in March 2025, demonstrates the huge financial expenditure required to extend HVDC networks in emerging nations such as India. While this project has long-term benefits for the country's electricity grid, it also demonstrates the difficulties of financing HVDC projects in areas with little financial resources.
Segment Overview:
Voltage Source Converter (VSC)
Voltage Source Converter (VSC) technology is quickly emerging as the leading segment in the High-Voltage Direct Current (HVDC) transmission business, accounting for more than 40% of all new HVDC projects. VSC-HVDC systems provide major advantages over classic Line Commutated Converter (LCC) systems, such as increased flexibility, improved controllability, and compatibility with modern power grids. These advantages are especially relevant as power grids expand to accommodate more renewable energy sources, which frequently necessitate more adaptable and resilient infrastructure. VSC technology has advanced significantly in recent years, with an emphasis on raising power ratings, lowering losses, and enhancing overall grid stability.
Modular Multilevel Converter (MMC) topologies have been developed, which considerably improve the efficiency and scalability of VSC technology. In 2023, a top power equipment manufacturer launched a new generation of MMC-VSC technology that can transfer up to 3 GW of electricity at ±525 kV. This invention significantly increases VSC systems' power capacity, allowing them to compete with classic LCC systems in ultra-high voltage and long-distance transmission applications, which were previously dominated by LCC systems.
On March 16, 2021, Sumitomo Electric and Siemens Energy will commission India's first VSC-HVDC link, demonstrating the benefits of VSC-HVDC technology. This system increases power quality and grid stability in India, highlighting VSC-HVDC's increasing importance in updating energy networks, particularly in emerging economies. Looking ahead, industry analysts project that the global installed capacity of VSC-HVDC systems will triple by 2030. This expansion is fueled by rising need for grid flexibility and the incorporation of renewable energy sources such as offshore wind farms and solar facilities. VSC systems are ideal for these applications because they can provide ancillary services like voltage support and black-start capabilities. These attributes make VSC-HVDC technology an excellent choice for offshore wind farm connections and urban power distribution, cementing its position as the dominant technology in the future of HVDC transmission.
Regional Outlook:
Dominating Region: Asia-Pacific
Asia-Pacific currently dominates the global High-Voltage Direct Current (HVDC) transmission industry, owing to fast industrialization, increased energy demand, and considerable expenditures in grid infrastructure. The region's great geographic extent, economic expansion, and ambitious renewable energy ambitions all contribute to its leadership in the HVDC market. Countries such as China and India are at the forefront of implementing HVDC technology, driven by the need to transport vast amounts of power from resource-rich locations to remote load centers. Furthermore, significant government expenditure for grid upgrade and cross-border electricity trading activities helps to accelerate the region's supremacy.
China, in particular, has actively expanded its ultra-high voltage direct current (UHVDC) network, with multiple 800 kV and 1100 kV projects currently under construction or planned. These initiatives seek to reduce transmission losses and improve the efficiency of long-distance power transfer throughout the country. Meanwhile, Southeast Asian countries are actively establishing HVDC links to improve regional energy security and speed up power trading.
China's ±200 kV Yangzhou-Zhenjiang HVDC power transmission project underwent full-capacity testing in April 2024, marking a significant accomplishment. The first phase of the project, located in Jiangsu Province, is designed to have a transmission capacity of 1.2 GW, with a total project capacity of 3.6 GW once completed.In India, the Prime Minister launched the Pugalur-Thrissur HVDC project in February 2021, which allows for the delivery of 2,000 MW of power to Kerala via the Madakkathara HVDC station. Adani Energy Solutions (AESL) has been selected as the preferred bidder for a major transmission system project under the Rajasthan Part-I Power Transmission plan in December 2024, expanding India's HVDC infrastructure even further. Furthermore, on November 20, 2024, REC turned over an HVDC transmission project to Power Grid Corporation, which contains two HVDC terminal stations with a total capacity of 12,000 MW. China alone operates or is constructing roughly 30 HVDC facilities with a total transmission capacity of more than 100 GW. Furthermore, India has committed to significant expenditures in HVDC projects to update its infrastructure and incorporate more renewable energy sources. The Asia-Pacific region controls around 45% of the global HVDC transmission business, demonstrating its dominance in the sector. This trend is projected to continue as the region strives for a more flexible and efficient power transmission network to meet its rising energy demands.
Competitive Intelligence:
The HVDC Transmission business is characterized by fierce competition between a few large global corporations and emerging regional organizations that prioritize technical innovation and project execution capabilities. ABB Ltd, Siemens AG, and General Electric are among the market leaders, having established strong positions through their extensive HVDC portfolios and project knowledge. In recent years, strategic collaborations and acquisitions have been used to increase technological capabilities and market reach, such as Hitachi's purchase of ABB's power grids section to form Hitachi Energy. Product development has focused on improving the efficiency and power rating of HVDC systems, with several companies introducing advanced VSC technologies and hybrid HVDC solutions.
Collaborations between HVDC technology manufacturers and grid operators are hastening progress in grid management and control. Looking ahead, the competitive landscape is expected to change as new players from emerging economies enter the market and a greater emphasis is placed on developing low-cost HVDC solutions for medium-voltage applications.
Analyst Opinion:
The HVDC Transmission sector is likely to expand rapidly and advance technologically in the coming years. The combination of current power electronics, digital control systems, and smart grid technologies has the potential to alter HVDC capabilities by delivering exceptional efficiency, dependability, and grid support. One emerging trend to watch is the development of hybrid AC/DC grid solutions, which integrate the best aspects of both technologies to provide more durable and adaptable power networks.
The combination of HVDC systems with energy storage technologies, as well as the concept of global energy interconnections, may represent the next stage in power transmission and distribution. However, addressing the challenges of interoperability, standardization, and cybersecurity in HVDC systems is critical to increasing acceptability and creating a truly integrated global grid. To expand the technology's use beyond ultra-high voltage projects, the industry must create low-cost alternatives for medium-voltage HVDC.
Major Players:
- ABB Ltd
- Siemens AG
- General Electric Company
- Hitachi Energy Ltd
- Mitsubishi Electric Corporation
- Toshiba Corporation
- Nexans SA
- NR Electric Co., Ltd
- C-EPRI Electric Power Engineering Co., Ltd
- Prysmian Group
Key Developments:
- Siemens Energy introduced a new generation of HVDC Light technology in July 2023, capable of transferring up to 3 GW of power at ±525 kV. This breakthrough greatly broadens the possible uses of Voltage Source Converter (VSC)-HVDC systems, providing increased capacity and efficiency for long-distance power transmission.
- In March 2024, ABB formed a strategic agreement with a top renewable energy producer to offer sophisticated HVDC solutions for offshore wind farm connections. The alliance focuses on cutting-edge subsea transmission technology that will help to integrate renewable energy into the grid.
- Kunshan GLVAC Yuantong New Energy Technology Co., Ltd. (GLVAC YT) announced a partnership with Sterling Tools Limited, India's second-largest automotive fastener manufacturer, on November 7, 2024, to produce sophisticated HVDC contactors and relays locally. Sterling Tools' subsidiary, Sterling Tech-Mobility Limited, plans to produce these components in India to meet the country's growing need for HVDC technologies.
- On April 29, 2024, State Grid Jiangsu Electric Power Company Limited, a subsidiary of State Grid Corporation of China, stated that the ±200 kV Yangzhou-Zhenjiang "embedded" HVDC power transmission project (first phase) passed its full-capacity test and met all planned requirements. The project, located in Jiangsu Province, China, will be constructed in three phases, with each phase designed for 1.2 GW of transmission capacity, for a total of 3.6 GW at completion.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium) *
5. COMPANY PROFILES
5.1. ABB Ltd
5.2. Siemens AG
5.3. General Electric Company
5.4. Hitachi Energy Ltd
5.5. Mitsubishi Electric Corporation
5.6. Toshiba Corporation
5.7. Nexans SA
5.8. NR Electric Co., Ltd
5.9. C-EPRI Electric Power Engineering Co., Ltd
5.10. Prysmian Group
5.11. Company name 11
5.12. Company name 12 (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Rising adoption of voltage source converter (VSC) technology
6.1.2. Trend 2
6.1.3. Trend 3
6.2. Market Drivers
6.2.1. Increasing integration of renewable energy sources
6.2.2. Driver 2
6.2.3. Driver 3
6.3. Market Restraints
6.3.1. High initial investment costs
6.3.2. Restraint 2
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TECHNOLOGY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
7.1. Line Commutated Converter (LCC)
7.2. Voltage Source Converter (VSC)
7.3. Others
8. BY COMPONENT (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
8.1. Converter Stations
8.2. Transmission Cables
8.3. Others
9. BY PROJECT TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
9.1. Point-to-Point Transmission
9.2. Back-to-Back Stations
9.3. Multi-Terminal Systems
10. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
10.1. Overhead
10.2. Underground
10.3. Subsea
11. BY VOLTAGE RATING (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
11.1. <350 kV
11.2. 350-640 kV
11.3. 640-800 kV
11.4. >800 kV
12. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
12.1. North America
12.1.1. United States
12.1.2. Canada
12.1.3. Mexico
12.2. South America
12.2.1. Brazil
12.2.2. Argentina
12.2.3. Rest of South America
12.3. Europe
12.3.1. Germany
12.3.2. United Kingdom
12.3.3. France
12.3.4. Italy
12.3.5. Spain
12.3.6. Russia
12.3.7. Rest of Europe
12.4. Asia-Pacific
12.4.1. China
12.4.2. Japan
12.4.3. India
12.4.4. Australia
12.4.5. South Korea
12.4.6. Rest of Asia-Pacific
12.5. Middle-East
12.5.1. UAE
12.5.2. Saudi Arabia
12.5.3. Turkey
12.5.4. Rest of Middle East
12.6. Africa
12.6.1. South Africa
12.6.2. Egypt
12.6.3. Rest of Africa
*NOTE: All the region mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
By Technology:
- Line Commutated Converter (LCC)
- Voltage Source Converter (VSC)
- Others
By Component:
- Converter Stations
- Transmission Cables
- Others
By Project Type:
- Point-to-Point Transmission
- Back-to-Back Stations
- Multi-Terminal Systems
By Application:
- Overhead
- Underground
- Subsea
By Voltage Rating:
- <350 kV
- 350-640 kV
- 640-800 kV
- >800 kV
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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